Solana’s Contradiction: Record Fundamentals Amidst Price Weakness

While Solana's token price has recently touched a new annual low, sparking bearish sentiment, a deeper look reveals a starkly different story. On-chain metrics are hitting historic highs, creating a significant divergence between technical price action and the network's underlying economic strength.

Despite an overall market mood characterized by "Extreme Fear," corporate and institutional activity around Solana is intensifying. Major players are building positions, signaling long-term confidence.
* Corporate Treasury Move: Following a strategy reminiscent of MicroStrategy, Mangoceuticals has announced plans to add $100 million worth of Solana to its corporate balance sheet as a reserve asset.
* Financial Integration Advances: Galaxy Digital recently settled a $50 million debt transaction directly on the Solana blockchain. In a separate development, State Street is preparing to launch a liquidity fund that will utilize Solana for settlements.
* Infrastructure Strengthening: Network reliability has been significantly bolstered by the "Firedancer" upgrade. Furthermore, a new testnet is already trialing security mechanisms designed to be resistant to quantum computing threats.

Technical Picture Hints at Further Downside Risk

The selling pressure on SOL intensified over the weekend, with the price breaking below a crucial psychological level. Currently trading at $119.47, the asset has fallen beneath the key $120 support zone that analysts had previously identified as a critical line in the sand.

This breakdown carries weight from a chart perspective, suggesting a potential exit from a descending channel. Technical analysis indicates that if the price consolidates sustainably below $120, the correction could extend toward the $100 region. A swift recovery back above the resistance area between $130 and $133 would be required to reverse the current bearish momentum. Notably, trading volume remains elevated, which may suggest that larger players are using the lower prices to accumulate.

Should investors sell immediately? Or is it worth buying Solana?

Fundamental Metrics Tell a Story of Dominance

In sharp contrast to the price action, Solana's fundamental economic indicators are breaking records. The network is on track to surpass Ethereum in annual protocol revenue. Since the start of 2025, it has generated approximately $2.5 billion in fees, substantially more than Ethereum's estimated $1.4 billion.

This performance highlights a shift from pure speculative asset to a profitable, utility-driven ecosystem. Network activity remains robust, with daily active addresses consistently ranging between three and six million. The Total Value Locked (TVL) is also being maintained at elevated levels, supported by decentralized exchanges that are increasingly capturing market share from Ethereum's Layer-2 solutions.

The current phase presents a clear dichotomy. Chart-based warnings are flashing due to the breach of $120, pointing to continued downside risk. Simultaneously, record-breaking protocol revenue and growing institutional adoption suggest the asset may be fundamentally undervalued. The immediate price direction will likely hinge on whether buyers can reclaim the $120 level promptly, potentially turning the recent decline into a bear trap.